Understanding Lease Tax Calculations (in Illinois)

My best attempt doing Chicago tax on the LH calc is to just do the deal with the regular IL tax as if it’s not in the city (select ny taxation if rolling in), and then just tax my final monthly an extra 9% or whatever it was.

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If i wanted a good estimate, i would fill out the lh calculator with the taxes set to 9% and select NY taxation. I would take note of the calculated taxes in the deal summary.

I would then add that tax amount to the gov fee amount and re-run with 9.5% as the tax rate and select monthly tax state.

It wont be perfect, but it’ll get you close enough to realize you shouldnt ever lease if you live in Chicago.

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Your sheet is fine…it matches to calc: (EDIT, pre tax)

Your calc doesnt account for chicago taxes though

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For sure…pre tax tho…as you know LH calc won’t deal with Chicago lease taxation.

OMG I’m cracking up lol :rofl:

Really appreciate the rest of the suggestions above too, thanks. Very quick response!

I would take @mllcb42 's advice if I were you.

If you have to lease, see if they offer a balloon lease. It is usually a little less expensive than a normal lease plus next time around you can trade it in (assuming you aren’t negative) and get a tax credit. Or you can but out the lease and not pay sales tax again.